Microinsurance policyholders may be individuals, households, groups, or whole communities. They may be found in rural, urban or sub-urban areas. Many but not all policyholders work in the informal sector.
Microinsurance reaches out to a very varied and broad clientele. This target clientele can range from people below the poverty line to people belonging to low or emerging middle classes who lack effective access to risk protection and remain vulnerable without insurance coverage or other means of protection against risk.
The target clientele of a particular microinsurance programme is often determined by the characteristics, goals, and existing operations of the insurer, delivery channel, and other stakeholders involved:
- Microfinance institutions involved in microinsurance typically insure their existing clients (most commonly borrowers, but also savers) and the family members of those clients.
- Private mutual insurance organisations (former mutual health organisations) may exclusively insure their members, who may be defined narrowly or broadly.
- Private or public insurers often target a group that can be reached through an existing delivery channel or aggregator:
- Clients of microfinance institutions or the MFIs themselves;
- Women’s associations;
- Trade unions, social and popular organisations;
- Funeral providers;
- Self-help groups (mutual assistance groups of 10 to 20 individuals);
- Groups receiving government cash transfers or other benefits.
- Less commonly, microinsurance is marketed to individual clients:
- Retail points-of-sale;
- Remittance providers, pawnshops, providers of utilities and other service providers.
- David M Dror (2008). A Socio-Economic Profile of the Micro (Health) Insurance Target Population. Asian Insurance Review, pp. 80-81, December 2008. New Delhi: Micro Insurance Academy
- Anja Smith, Doubell Chamberlain, Christine Hougaard, Herman Smit & Joel Carlman (2010). Reaching the client: Update on microinsurance innovation in South Africa. Cape Town: The Centre for Financial Regulation and Inclusion.